Wall St. Brief: Best Buy Has a NEW CEO, Aetna Will Buy Coventry for $7.3 BILLION
Aetna (NYSE:AET) will buy Coventry Health Care (NYSE:CVH) in a cash and stock transaction valued at $7.3 billion; this includes taking the latter’s debt. With the $42.08 per share offer, it represents a 20 percent increase to Coventry’s closing price from Friday and in premarket trading, the stock is up 18.3 percent. From the acquisition, Aetna will gain 5 million members, making it one of the largest providers of government-funded healthcare.
Best Buy (NYSE:BBY) has a new CEO: turn-around specialist Hubert Joly, the head of Carlson, the restaurant and hotel company. He will take over for interim CEO Mike Mikan. Joly will now have to deal with Best Buy founder Richard Schulze, who rejected a company offer to undergo due diligence and propose a buyout offer within 60 days.
Groupon (NASDAQ:GRPN) saw at least four of its early investors either sell many or all of their shares since the company’s post-IPO lockup period ended in June, reported the Wall Street Journal. This includes venture-capital firm Andreessen Horowitz. The investors’ actions have been viewed as “abandoning a sinking ship” but it’s actually policy for some venture capital firms to get rid of their holdings as soon as possible after IPOs.
While it seeks to cut European costs, GM (NYSE:GM) could sign an agreement within a week with the German government and the IG Metall Union to apply a “short-time program” at Opel’s Russelsheim and Kaiserslautern plants. The action would enable GM to either cut or widen employees’ workdays or workweeks depending on demand instead of laying off them off from the plants.
JPMorgan (NYSE:JPM) named former Exxon (NYSE:XOM) CEO Lee Raymond as the chairman of a board committee that’s reviewing the bank’s multi-billion dollar “London-whale” trading debacle, reported the Wall Street Journal. Former JPM director John Biggs said of Raymond, “He won’t whitewash anything.” He was also said to be “tough as nails” while at Exxon.